Spanish utility giant Iberdrola has claimed that regulatory reforms that would essentially kill the country’s solar industry don’t go far enough.
In a statement attached to the group’s shareholder dividend announcement, the company says that the changes do not do enough to “limit the growth of immature technologies”.
It goes on to specifically pick out solar which it claims provides 5% of production but accounts for 20% of energy costs.
The company also bemoans rising taxes which the company blames for a 10% cut in its shareholder dividend to €0.125 (US$0.17) a share.
The group’s overall earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 4.1% to €5.5 billion (US$7.6 billion).
Ironically, its renewables division saw EBITDA rise 2.5% compared to the same period last year topping €1.2 billion (US$1.65 billion).
In July new measures to cut Spain’s energy budget deficit of €26 billion (US$34 billion) were announced.
These included a retroactive cap of 5-5.5% after tax on the profit margins of PV projects, in many this will be lower than the cost of borrowing.
The rules also “criminalised” self consumption by forcing people who had installed panels for their own use to buy their own electricity at a tariff above the market rate. Using it directly could see fines of up to €30 million (US$40 million).
The local government of Murcia has taken the government to the national constitutional court to dispute the changes.